In turn these are:(1) asset management agency problems of institutional investors, and (2) government distortions in real estate finance that encouraged borrowers to accept high leverage when it was offered.
investments could create problems for investors far greater than a bit of volatility.
Events of the last few days have highlighted the problem of promising investors instant payback when the means of funding that redemption – commercial property – is not easy to sell quickly.
To the Editor: Re "Home Team" (Op-Ed, Jan . 6: Alex Perriello crafts a creative solution to the mortgage mess in his suggestion for "equity-sharing" between lenders and borrowers, but implies that implementing such a program would be easy, and that it would solve the problem of lenders, investors and borrowers having opposing interests.
In the event, his goal as Treasury secretary was to avoid the "moral hazard" problem of letting investors expect that governments always will bail them out.
And this disclosure gap is likely to become more of a problem for investors as they turn increasingly to foreign stocks as an alternative to swooning domestic shares.
"Private Traders See Gold in Venture Capital Ruins" (April 15) dealt with the problems of venture capital investors during a market downturn but did not consider the special plight of corporations that have strategic venture investment programs -- seeking benefits beyond profits by investing in private companies.
On the economic front, we put emphasis on a stable and fair tax system and investment in a green economy that will address the current problems of both foreign investors and Greek citizens.
Of course, the problem for investors in Micron Technology, despite the current run up, is the volatile nature of the demand and pricing of memory.
With short-term rates currently near zero, a jump of 3 percentage points would be such a catastrophic event that money funds might be the least of investors' problems.
